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For the EUR, it is a relatively quiet day on the Eurozone economic calendar. Finalized June inflation figures for the Eurozone are due out later this morning.
The markets will look for upward revisions to prelim figures to deliver further EUR support.
According to the prelim numbers, the annual rate of inflation accelerated from 8.1% to 8.6% in June.
With little else for the markets to consider, market risk sentiment will remain a key driver throughout the Tuesday session. A lack of FOMC member speeches over the blackout period could also provide further EUR/USD support, with the markets easing bets on a 100-basis point rate hike later this month.
However, for the EUR, economic woes and the energy crisis remain headwinds that could limit a near-term move towards $1.10.
EUR/USD Price Action
At the time of writing, the EUR was up 0.16% to $1.01586.
A mixed morning saw the EUR fall to an early low of $1.01193 before rising to a high of $1.01588.
Technical Indicators
The EUR/USD will need to avoid a fall through the $1.0141 pivot to target the First Major Resistance Level (R1) at $1.0203.
Market risk sentiment will need to improve further to support a breakout from the Monday high of $1.02013.
An extended rally would likely see the EUR/USD pair test the Second Major Resistance Level (R2) at $1.0263 before any pullback.
The Third Major Resistance Level (R3) sits at $1.0386.
A fall through the pivot would bring the First Major Support Level (S1) at $1.0080 into play.
An extended sell-off throughout the day would likely test the second Major Support Level (S2) at $1.0018 and support at $1.00.
The Third Major Support Level sits at $0.9895.
Looking at the EMAs and the 4-hourly candlestick chart (below), it is a bearish signal.
At the time of writing, the EUR sat above the 50-day EMA, currently at $1.01270.
The 50-day EMA narrowed to the 100-day EMA, with the 100-day EMA flattening on the 200-day EMA, which are EUR/USD price positives.
A breakout from R1 would support a run at the 100-day EMA, currently at $1.02224, and R2.
The US Session
It is another quiet day ahead on the US economic calendar. Housing sector data, including building permits and housing starts, are in focus later today. However, we don’t expect the numbers to influence the EUR/USD.
This article was originally posted on FX Empire